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Page 1 CPT Fundamentals of Accounting: Chapter 8 – Unit 1 CA. V.K. Jain Page 2 CPT Fundamentals of Accounting: Chapter 8 – Unit 1 CA. V.K. Jain Features of a partnership firm and need of partnership deed Points to be covered in a partnership deed Technique of maintaining P & L Appropriation Account Methods of maintaining partners capital accounts, namely fixed and fluctuating Partners capital and current accounts Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / Remuneration etc. to partners Page 3 CPT Fundamentals of Accounting: Chapter 8 – Unit 1 CA. V.K. Jain Features of a partnership firm and need of partnership deed Points to be covered in a partnership deed Technique of maintaining P & L Appropriation Account Methods of maintaining partners capital accounts, namely fixed and fluctuating Partners capital and current accounts Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / Remuneration etc. to partners Indian partnership act – “the relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all” Essential features: Association of two or more persons Agreement - verbal/oral or in writing Existence of business – legal- recognition in the eyes of law Page 4 CPT Fundamentals of Accounting: Chapter 8 – Unit 1 CA. V.K. Jain Features of a partnership firm and need of partnership deed Points to be covered in a partnership deed Technique of maintaining P & L Appropriation Account Methods of maintaining partners capital accounts, namely fixed and fluctuating Partners capital and current accounts Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / Remuneration etc. to partners Indian partnership act – “the relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all” Essential features: Association of two or more persons Agreement - verbal/oral or in writing Existence of business – legal- recognition in the eyes of law Carrying of business by all of them or any of them acting for all Sharing of profits Unlimited liability Sharing of profits – not necessarily losses Mutual agreement Relationship - principal and agent Page 5 CPT Fundamentals of Accounting: Chapter 8 – Unit 1 CA. V.K. Jain Features of a partnership firm and need of partnership deed Points to be covered in a partnership deed Technique of maintaining P & L Appropriation Account Methods of maintaining partners capital accounts, namely fixed and fluctuating Partners capital and current accounts Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / Remuneration etc. to partners Indian partnership act – “the relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all” Essential features: Association of two or more persons Agreement - verbal/oral or in writing Existence of business – legal- recognition in the eyes of law Carrying of business by all of them or any of them acting for all Sharing of profits Unlimited liability Sharing of profits – not necessarily losses Mutual agreement Relationship - principal and agent Persons entered into partnership with one another are individually called partners and collectively a firm Name under which business of the firm is carried on is called firm name Maximum limit of partners: • Indian Partnership Act 1932 is silent on this issue • According to Companies Act 1956, maximum limit of partners for a Banking Company is 10 and of other is 20. A partnership firm becomes illegal if number of partners exceeds the said limitRead More
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56 videos|89 docs|68 tests
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